Technical Summary: Stock charts only look like this in two situations. Either it is a severe bear market or the company has serious fundamental issues. As it is has been one of the largest global bull markets on record one has to assume fundamental issues. Since its IPO the stock has gone from a high weekly close of $1.385 to its closing price on the 26th of September of 15.5 cents. The 1 year chart is an extension of
its longer term profile with the stock in a wider fundamental downtrend that is ocassionally interrupted by bursts of positive activity, these bursts have been “dead cat bounces” (DCB). Is the most recent of these on the right hand side of the chart a DCB? Time will tell. But if this becomes buyable again we would like to see the stock make a couple of higher lows and perhaps clear a couple of areas of overhead resistance. The only reason you would buy right now is if you were convinced you had nailed the bottom.
